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It was never ever mentioned in the books, so you can do what you like. I agree with Maia that she's English rather than Scottish or anything, though. And I think it's best to place her somewhere fairly close to London, although probably further than Harry, as getting between her home and London and her friends' houses doesn't seem to be too difficult for her family. The fact that she knew Tottenham Court Road in London in DH suggests to me that she is reasonably familiar with London, too. Or do all Brits know the name? (Sorry, I'm not British, so if anything I say here is silly, please ignore me )

This essay, although quite old, might help you a bit - just scroll down to the subheading 'The Heroes - Harry, Ron and Hermione'.

Also, JKR said on her website that in a very, very early draft of PS/SS, Harry's family lived on an island, Hermione's family lived on the mainland and her father saw an explosion on the island, sailed over and found the Potters' bodies. Jo decided very soon that that wasn't a good idea and moved the Potters to Godric's Hollow, but obviously she had placed Hermione's family by the coast early on. No doubt she's changed her mind as to where Hermione lived now anyway, but it's the only clue I can think of

So if you're not sure where to put her family, hopefully some of that info helps a bit, or if you've already got an idea, then I'd say it's probably fine, as long as it's in England. There's definitely no canon evidence, so go ahead and do what you like

The fact that she knew Tottenham Court Road in London in DH suggests to me that she is reasonably familiar with London, too. Or do all Brits know the name?

Tottenham Court Road is rather well-known, actually. It's very central. I stayed at a hotel in Tottenham Court Road once. Tottenham Court Road, Charing Cross Road, Oxford Street, Piccadilly Circus and Shaftesbury Avenue are the kinds of London streets that most people have at least heard mentioned at some point if they haven't been there themselves.

I think chasing_willow's post makes a lot of sense. You can figure out a lot about someone from their name. That doesn't mean she has to live in one of those places, of course, but it makes sense anyway.

Now, just because I've never imagined Hermione with any sort of strong accent (read: Yorkshire) and believe her to be English rather than Welsh, I think it would be safe to go with West Midlands. I did a wikipedia search on Midlands; click here and scroll down to English Midlands. There's a list of counties generally included under the term Midlands as well as some notable cities and towns in the region. Here is a map of the English Midlands.

Midlands? Hmmm, that's interesting. I don't know much about the more southern counties but there is less strong accent for where I live in Nottinghamshire but there's still one that a Brit would recognise distinctly from, say, a southern accent or a Yorkshire accent. My friend from Peterborough has, to me, a southern accent but he's pretty accentless because of his upbringing anyway. However, there are a lot of regional accents, such as Gloucestershire's, which are very distinct. Be careful to not assume that it's only places like Liverpool, Northumbria and Yorkshire who have strong accents.

As for choosing due to the amount of 'Grangers' in an area. Don't think it will work. It certainly does for a surname like mine, which funnily enough is a small village in Derbyshire and there's several different families with my surname in the South Yorkshire town that I came from. However, I think Granger is too popular a name. It's not as common as Brown or Smith or Jones ... but still.

As for me ... for some random reason I'm thinking Luton. Because my friend Siobhan is from Luton and she's very Hermione-like in the way she speaks (don't tell her I said that!). It's just a rough feeling. Hermione seems like a Londonish girl but not someone from central London!

While I agree that Tottenham Court Road is fairly well known, so even a non-Londoner would know it, I think it would make sense for Hermoine to live there abouts. It seems more likely she would think of a place she was familar with, and also people seem to prefer to apparate to places they already know, Harry, for example, isn't sure whether his apparation to Shell Cottage would work.

However, nothing's definite. You can probably have her living wherever, although I can't really imagine her with a strong accent, so be careful with that!

I placed in her Oxford, as that's where Emma Watson lives and I wasn't feeling overly creative at the time. And, my mate from Oxford reminds me so much of a male version of Hermione it's not even funny. I really couldn't see her being from anywhere near Yorkshire, being from Bradford myself. Too thick of an accent for a Hermione-like character, or from the Midlands - again, just not the right accent I see her with. But she seems very South East to me.

The accent...
That's a very good point and I failed to consider it. If Hermione had a distinct brogue of some sort, we would have probably heard about it.

I agree with Laura that she is probably not from central London - it just doesn't "fit with the profile" for a family of dentists.
I could easily see her living in the quiet 'burbs of a major city.

However! It's not impossible that she didn't have a local accent because neither she or her parents wanted to have one - it's possible to have non-regional diction for tv anchors, it's possible for actors to sound American, Australian or British, when they're really not.
Hermione seems like exactly the sort of girl who would apply copious effort and diligent practice to eliminating a trait she deems unbecoming.